Rules engine for applying rules from a reviewing network to signals from an originating network

ABSTRACT

A rules engine for applying rules from a reviewing network to data signals from an originating network is described. The rules engine includes a processor coupled to a memory device. The rules engine is coupled to the reviewing network, and is configured to receive a clearing data signal from the originating network. The clearing data signal includes clearing data for at least one transaction that has been processed by the originating network. The originating network and the reviewing network are payment networks. Additionally, the rules engine generates a clearing response data signal that includes clearing response data by comparing the clearing data to the set of predefined rules stored in the memory device. The clearing response data indicates that the reviewing network will not guarantee settlement of at least one transaction included in the clearing data. The rules engine transmits the clearing response data signal to the originating network.

BACKGROUND

This disclosure relates to processing electronic signals transmittedthrough computer networks, and more specifically to detecting data insignals received from an originating data network and determiningwhether aspects of the data comply with rules stored in an electronicdatabase at a reviewing network.

At least some known payment networks perform a payment authorizationprocess, followed by a clearing process, and a settlement process. Morespecifically, the payment authorization process, clearing process, andsettlement process are performed within the same payment network, ratherthan being distributed across multiple payment networks. Accordingly, ifa first payment network is restricted from performing a subset of thepayment authorization, clearing, and settlement processes within acertain jurisdiction, for certain types of transactions, and/or forcertain parties to the transactions, for example due to governmentalrestrictions, the first payment network is unable to delegate theprocesses to a second payment network that is not subject to the samerestrictions.

BRIEF DESCRIPTION OF THE DISCLOSURE

In one aspect, a rules engine for applying rules from a reviewingnetwork to data signals from an originating network is provided. Therules engine includes a processor coupled to a memory device. The rulesengine is coupled to the reviewing network. The rules engine isconfigured to receive a clearing data signal from the originatingnetwork. The clearing data signal includes clearing data for at leastone transaction that has been processed by the originating network. Theoriginating network and the reviewing network are payment networks.Additionally, the rules engine generates a clearing response data signalthat includes clearing response data by comparing the clearing data tothe set of predefined rules stored in the memory device. The clearingresponse data indicates that the reviewing network will not guaranteesettlement of at least one transaction included in the clearing data.Additionally, the rules engine transmits the clearing response datasignal to the originating network.

In another aspect, a method for applying rules from a reviewing networkto data signals from an originating network is provided. The method isimplemented by a rules engine including a processor coupled to a memorydevice and to a payment network. The method includes receiving, by therules engine, a clearing data signal from the originating network. Theclearing data signal includes clearing data for at least one transactionthat has been processed by the originating network. The originatingnetwork and the reviewing network are payment networks. The methodadditionally includes generating, by the rules engine, a clearingresponse data signal that includes clearing response data by comparingthe clearing data to the set of predefined rules stored in the memorydevice. The clearing response data indicates that the reviewing networkwill not guarantee settlement of at least one transaction included inthe clearing data. The method also includes transmitting, by the rulesengine, the clearing response data signal to the originating network.

In yet another aspect, a computer-readable storage medium havingcomputer-executable instructions embodied thereon for applying rulesfrom a reviewing network to data signals from an originating network.When executed by a rules engine including a processor coupled to amemory device and to a processing network, the computer-executableinstructions cause the rules engine to receive a clearing data signalfrom the originating network. The clearing data signal includes clearingdata for at least one transaction that has been processed by theoriginating network. The originating network and the reviewing networkare payment networks. Additionally, the instructions cause the rulesengine to generate a clearing response data signal that includesclearing response data by comparing the clearing data to the set ofpredefined rules stored in the memory device. The clearing response dataindicates that the reviewing network will not guarantee settlement of atleast one transaction included in the clearing data. Additionally, theinstructions cause the rules engine to transmit the clearing responsedata signal to the originating network.

BRIEF DESCRIPTION OF THE DRAWINGS

FIGS. 1-10 show example embodiments of the methods and systems describedherein.

FIG. 1 is a schematic diagram illustrating an enhanced multi-partypayment card industry system for enabling payment-by-card transactionsin which merchants and card issuers do not necessarily have a one-to-onerelationship in a first payment processing network, and for receivingand analyzing electronic signals transmitted from a second paymentprocessing network.

FIG. 2 is a simplified block diagram of an example payment processingsystem including a payment processing server computing device of a firstpayment processing network, a rules engine, a computing device of asecond payment processing network, and a plurality of other clientcomputing devices in accordance with one example embodiment of thepresent disclosure.

FIG. 3 is an expanded block diagram of a server architecture of thefirst payment processing system including the plurality of computingdevices in accordance with one example embodiment of the presentdisclosure.

FIG. 4 illustrates a configuration of a client system shown in FIGS. 2and 3 in accordance with one example embodiment of the presentdisclosure.

FIG. 5 illustrates a configuration of a server system shown in FIGS. 2and 3 in accordance with one example embodiment of the presentdisclosure.

FIG. 6 is a diagram of electronic data signals received and transmittedamong the first payment processing network, the second paymentprocessing network, and the rules engine.

FIG. 7 is a diagram of rules that the rules engine applies totransaction data included in clearing data from the second paymentprocessing network.

FIG. 8 is a diagram of clearing response data transmitted from the rulesengine to the second payment processing network.

FIG. 9 is a flowchart of an example process implemented by the rulesengine for applying rules from the first payment processing network todata signals from the second payment processing network in one exampleembodiment of the present disclosure.

FIG. 10 is a diagram of components of one or more example computingdevices that may be used in the system shown in FIG. 2.

DETAILED DESCRIPTION OF THE DISCLOSURE

A rules engine for applying rules from a reviewing network to datasignals from an originating network is provided. The rules engineincludes a processor coupled to a memory device. The rules engine iscoupled to the reviewing network. The rules engine is configured toreceive a clearing data signal from the originating network. Theclearing data signal includes clearing data for at least one transactionthat has been processed by the originating network. In at least someimplementations, the originating network and the reviewing network arepayment networks as described in more detail herein. Additionally, therules engine generates a clearing response data signal that includesclearing response data by comparing the clearing data to the set ofpredefined rules stored in the memory device. The clearing response dataindicates that the reviewing network will not guarantee settlement of atleast one transaction included in the clearing data. Additionally, therules engine transmits the clearing response data signal to theoriginating network.

If the reviewing network (i.e., a first payment processing network)guarantees settlement for a transaction, the reviewing network isresponsible for paying the monetary amount of the transaction if thetransaction does not settle. For example, if the reviewing networkguarantees settlement of a transaction for $30.00 and the transactionsubsequently does not settle, the reviewing network is responsible forpaying $30.00 to the acquiring bank associated with the transaction.

In some implementations, the clearing data includes a first monetaryamount for a first transaction and the rules engine is furtherconfigured to detect the first monetary amount in the first onetransaction, add the first monetary amount to a running total, determinethat the running total exceeds a predefined threshold amount stored inthe memory device, and include an error code in the clearing responsedata indicating that the reviewing network will not guarantee settlementat least because the running total exceeds the predefined thresholdamount.

In some embodiments, in which the clearing data includes a firstmonetary amount for a first transaction, the rules engine compares thefirst monetary amount with at least one predefined reference monetaryamount, determines that the first monetary amount exceeds the predefinedreference monetary amount, and includes an error code in the clearingresponse data indicating that the reviewing network will not guaranteesettlement at least because the first monetary amount exceeds thepredefined reference monetary amount.

In some implementations, the clearing data includes an identification ofa first bank that is one of an acquirer bank and an issuing bankassociated with a first transaction and the rules engine compares theidentification of the first bank with a predefined set of sanctionedbanks stored in the memory device, determines that the first bank isincluded in the predefined set of sanctioned banks, and includes anerror code in the clearing response data indicating that the reviewingnetwork will not guarantee settlement at least because the first bank isincluded in the predefined set of sanctioned banks.

In some embodiments, the clearing data includes a flag indicating that afirst transaction is a recurring transaction and the rules enginedetects the flag associated with the first transaction, compares thefirst transaction with a set of recurring payment cancellation requests,and includes an error code in the clearing response data indicating thatthe reviewing network will not guarantee settlement at least because thefirst transaction is associated with a recurring payment cancellationrequest.

In some implementations, the clearing data includes an account numberassociated with a first transaction, and the rules engine compares theaccount number to a predefined range of authorized account numbers,determines that the account number is outside of the range, and includesan error code in the clearing response data indicating that thereviewing network will not guarantee settlement at least because thefirst transaction is associated with an account number that is not inthe predefined range of authorized account numbers.

The rules engine, in some implementations, determines that the clearingdata for a first transaction is in compliance with the set of predefinedrules and transmits funds from a financial account associated with thereviewing network to an acquiring bank associated with the firsttransaction when the first transaction does not settle. The rulesengine, in some embodiments, receives the clearing data signal includingclearing data for a batch of transactions that have been processed bythe originating network on behalf of a first acquiring bank andgenerates the clearing response data for every transaction in the batch.

The methods and systems described herein may be implemented usingcomputer programming or engineering techniques including computersoftware, firmware, hardware or any combination or subset thereof,wherein the technical effect is achieved by performing at least one of:(a) receiving a clearing data signal from an originating network, theclearing data signal including clearing data for at least onetransaction that has been processed by the originating network, whereinthe originating network is a payment network; (b) generating a clearingresponse data signal including clearing response data by comparing theclearing data to a set of predefined rules stored in a memory device,wherein the clearing response data indicates that the reviewing networkwill not guarantee settlement of at least one transaction included inthe clearing data; and (c) transmitting the clearing response datasignal to the originating network. The technical effects describedherein apply to the technical field of processing electronic datasignals transmitted through a computer network and determining whetherdata in the electronic data signals comply with predefined criteria. Thesystems and methods described herein provide the technical advantage ofenabling a first processing network to offload data-processing functionsto a second processing network that is communicatively coupled to thesecond processing network.

As used herein, the terms “transaction card,” “financial transactioncard,” and “payment card” refer to any suitable transaction card, suchas a credit card, a debit card, a prepaid card, a charge card, amembership card, a promotional card, a frequent flyer card, anidentification card, a gift card, and/or any other device that may holdpayment account information, such as mobile phones, smartphones,personal digital assistants (PDAs), key fobs, and/or computers. Eachtype of transaction card can be used as a method of payment forperforming a transaction.

In one embodiment, a computer program is provided, and the program isembodied on a computer-readable medium. In an example embodiment, thesystem is executed on a single computer system, without requiring aconnection to a sever computer. In a further example embodiment, thesystem is being run in a Windows® environment (Windows is a registeredtrademark of Microsoft Corporation, Redmond, Wash.). In yet anotherembodiment, the system is run on a mainframe environment and a UNIX®server environment (UNIX is a registered trademark of AT&T located inNew York, N.Y.). The application is flexible and designed to run invarious different environments without compromising any majorfunctionality. In some embodiments, the system includes multiplecomponents distributed among a plurality of computing devices. One ormore components may be in the form of computer-executable instructionsembodied in a computer-readable medium. The systems and processes arenot limited to the specific embodiments described herein. In addition,components of each system and each process can be practiced independentand separate from other components and processes described herein. Eachcomponent and process can also be used in combination with otherassembly packages and processes.

The following detailed description illustrates embodiments of thedisclosure by way of example and not by way of limitation. It iscontemplated that the disclosure has general application to processingfinancial transaction data by a third party in industrial, commercial,and residential applications.

As used herein, an element or step recited in the singular and precededwith the word “a” or “an” should be understood as not excluding pluralelements or steps, unless such exclusion is explicitly recited.Furthermore, references to “example embodiment” or “one embodiment” ofthe present disclosure are not intended to be interpreted as excludingthe existence of additional embodiments that also incorporate therecited features.

FIG. 1 is a schematic diagram illustrating an enhanced multi-partypayment card industry system 120 for enabling payment-by-cardtransactions in which merchants and card issuers do not necessarily havea one-to-one relationship in a first payment processing network 128(“reviewing network”), and for receiving and analyzing electronicsignals transmitted from a second payment processing network 170(“originating network”). The present disclosure relates to anenhancement of payment card system 120, such as a credit card paymentsystem using the MasterCard® payment card system payment network 128(also referred to as an “interchange” or “interchange network”).MasterCard® payment card system payment network 128 is a proprietarycommunications standard promulgated by MasterCard InternationalIncorporated® for the exchange of financial transaction data betweenfinancial institutions that are members of MasterCard InternationalIncorporated®. (MasterCard is a registered trademark of MasterCardInternational Incorporated located in Purchase, N.Y.).

In payment card system 120, a financial institution such as an issuer130 issues a payment account card, such as a credit card account or adebit card account, to a cardholder 122, who uses the payment accountcard to tender payment for a purchase from a merchant 124. To acceptpayment with the payment account card, merchant 124 must normallyestablish an account with a financial institution that is part of thefinancial payment system. This financial institution is usually calledthe “merchant bank” or the “acquiring bank” or “acquirer bank” or simply“acquirer”. When a cardholder 122 tenders payment for a purchase with apayment account card (also known as a financial transaction card),merchant 124 requests authorization from acquirer 126 for the amount ofthe purchase. The request may be performed over the telephone, but isusually performed through the use of a point-of-interaction terminal,which reads the cardholder's account information from the magneticstripe on the payment account card or EMV chip and communicateselectronically with the transaction processing computers of acquirer126. Alternatively, acquirer 126 may authorize a third party to performtransaction processing on its behalf. In this case, thepoint-of-interaction terminal will be configured to communicate with thethird party. Such a third party is usually called a “merchant processor”or an “acquiring processor.” In some instances, a merchant (e.g.,merchant 124) stores payment card information associated with acardholder (e.g., cardholder 122) and requests authorization fromacquirer 126 using the stored payment card information, rather thanreading the cardholder's account information from the payment carditself (i.e., a card-on-file (COF) transaction).

Using payment card system payment network 128, the computers of acquirer126 or the merchant processor will communicate with the computers ofissuer 130, to determine whether the cardholder's account 132 is in goodstanding and whether the purchase is covered by the cardholder'savailable credit line or account balance. Based on these determinations,the request for authorization will be declined or accepted. If therequest is accepted, an authorization code is issued to merchant 124.

When a request for authorization is accepted, the available credit lineor available balance of cardholder's account 132 is decreased. Normally,a charge is not posted immediately to a cardholder's account becausebankcard associations, such as MasterCard International Incorporated®,have promulgated rules that do not allow a merchant to charge, or“capture,” a transaction until goods are shipped or services aredelivered. When a merchant ships or delivers the goods or services,merchant 124 captures the transaction by, for example, appropriate dataentry procedures on the point-of-interaction terminal. If a cardholdercancels a transaction before it is captured, a “void” is generated. If acardholder returns goods after the transaction has been captured, a“credit” is generated.

For PIN debit card transactions, when a request for authorization isapproved by the issuer, the cardholder's account 132 is decreased.Normally, a charge is posted immediately to cardholder's account 132.The bankcard association then transmits the approval to the acquiringprocessor for distribution of goods/services, or information or cash inthe case of an ATM.

After a transaction is captured, the transaction is cleared and settledbetween merchant 124, acquirer 126, and issuer 130. Clearing refers tothe communication of financial data for reconciliation purposes betweenthe parties. Settlement refers to the transfer of funds between themerchant's account, acquirer 126, and issuer 130 related to thetransaction.

The enhancement described herein enables first payment processingnetwork 128 to receive and analyze electronic data signals from a secondpayment processing network 170, thereby enabling processing functions tobe distributed across two networks. More specifically, and as describedin more detail herein a rules engine 210 coupled to first paymentprocessing network 128 receives clearing data signals transmitted fromsecond payment processing network 170 and determines whether clearingdata within the electronic data signals comply with a set of rulesstored in memory. If the clearing data does comply with the rules, thenthe first payment processing network guarantees settlement ofcorresponding transactions represented in the clearing data. If theclearing data does not comply with the rules, the rules engine generatesone or more error codes specifying why the first payment processingnetwork 128 will not guarantee settlement of the correspondingtransactions.

FIG. 2 is a simplified block diagram of an example payment processingsystem 200 in accordance with one embodiment of the present disclosure.In the example embodiment, system 200 includes a payment processingserver computing device 202, a plurality of client subsystems, alsoreferred to as client systems 204 or client computing devices, connectedto payment processing server computing device 202, a computing device(i.e., also a client computing device 204) of second payment processingnetwork 170, and a rules engine 210. As described in more detail withreference to FIG. 3, client systems 204 include computer systems ofsecond payment processing network 170, computer systems of merchants(e.g., merchant 124), computer systems of acquirers (e.g., acquirer126), and computer systems of one or more issuers (e.g., issuer 130). Inone embodiment, client systems 204 are computers including a webbrowser, such that payment processing server computing device 202 and/orrules engine 210 are accessible to client systems 204 using theInternet. Client systems 204 are interconnected to the Internet throughmany interfaces including a network, such as a local area network (LAN)and/or a wide area network (WAN), dial-in connections, cable modems,wireless-connections, and special high-speed ISDN lines. Client systems204 may be any device capable of interconnecting to the Internetincluding a mobile computing device, such as a notebook computer, aweb-based phone, a personal digital assistant (PDA), or otherweb-connectable equipment.

In some embodiments, client computing device 204 includes apoint-of-sale (POS) device, a cardholder computing device (e.g., asmartphone, a tablet, or other computing device), a computing device ofsecond payment processing network 170, or any other computing devicecapable of communicating with payment processing server computing device202. A database server 206 is connected to a database 208 containinginformation on a variety of matters, as described below in greaterdetail. In one embodiment database 208 is stored on payment processingserver computing device 202 and may be accessed by potential users atone of client systems 204 by logging onto payment processing servercomputing device 202 through one of client systems 204. In anyalternative embodiment, database 208 is stored remotely from paymentprocessing server computing device 202 and may be non-centralized. In atleast some implementations, as described in more detail herein, rulesengine 210 stores data to, and retrieves data from, database 208.

FIG. 3 is an expanded block diagram of an example embodiment of a serverarchitecture of payment processing system 200 in accordance with oneembodiment of the present disclosure. Payment processing system 200includes payment processing server computing device 202, client systems204, and rules engine 210. Payment processing server computing device202 includes database server 206, an application server 302, a webserver 304, a fax server 306, a directory server 308, and a mail server310. A disk storage unit 312 is coupled to database server 206 anddirectory server 308. Servers 206, 302, 304, 306, 308, and 310 arecoupled in a local area network (LAN) 314. In addition, a systemadministrator's workstation 316, a user workstation 318, and asupervisor's workstation 320 are coupled to LAN 314. Alternatively,workstations 316, 318, and 320 are coupled to LAN 314 using an Internetlink or are connected through an Intranet. In some implementations,rules engine 210 is remote from payment processing server computingdevice 202 but communicatively coupled thereto. In otherimplementations, rules engine 210 is incorporated into paymentprocessing server computing device 202.

Each workstation, 316, 318, and 320, is a personal computer having a webbrowser. Although the functions performed at the workstations typicallyare illustrated as being performed at respective workstations 316, 318,and 320, such functions can be performed at one of many personalcomputers coupled to LAN 314. Workstations 316, 318, and 320 areillustrated as being associated with separate functions only tofacilitate an understanding of the different types of functions that canbe performed by individuals having access to LAN 314.

Payment processing server computing device 202 is configured to becommunicatively coupled to various entities, including acquirers 322,issuers 324, and to third parties 334 (e.g., auditors) and at least onecomputing device 204 of second payment processing network 170, using anInternet connection 326. Server system 202 is also communicativelycoupled with one or more merchants 336. The communication in the exampleembodiment is illustrated as being performed using the Internet,however, any other wide area network (WAN) type communication can beutilized in other embodiments, i.e., the systems and processes are notlimited to being practiced using the Internet. In addition, and ratherthan WAN 328, local area network 314 could be used in place of WAN 328.As described above, in some implementations, rules engine 210 is remotefrom payment processing server computing device 202 but communicativelycoupled thereto. In other implementations, rules engine 210 isincorporated into payment processing server computing device 202.

In the example embodiment, any authorized individual or entity having aworkstation 330 may access system 200. At least one of the clientsystems includes a manager workstation 332 located at a remote location.Workstations 330 and 332 include personal computers having a webbrowser. Furthermore, fax server 306 communicates with remotely locatedclient systems, including a client system 332, using a telephone link.Fax server 306 is configured to communicate with other client systems316, 318, and 320 as well.

FIG. 4 illustrates an example configuration of a client computing device402. Client computing device 402 may include, but is not limited to,client systems (“client computing devices”) 204, 316, 318, 320, 330,manager workstation 332, and third party computing devices 334 (shown inFIG. 3).

Client computing device 402 includes a processor 405 for executinginstructions. In some embodiments, executable instructions are stored ina memory area 410. Processor 405 may include one or more processingunits (e.g., in a multi-core configuration). Memory area 410 is anydevice allowing information such as executable instructions and/or otherdata to be stored and retrieved. Memory area 410 may include one or morecomputer-readable media.

Client computing device 402 also includes at least one media outputcomponent 415 for presenting information to a user 401 (e.g., acardholder 122). Media output component 415 is any component capable ofconveying information to user 401. In some embodiments, media outputcomponent 415 includes an output adapter such as a video adapter and/oran audio adapter. An output adapter is operatively coupled to processor405 and operatively coupleable to an output device such as a displaydevice (e.g., a liquid crystal display (LCD), organic light emittingdiode (OLED) display, cathode ray tube (CRT), or “electronic ink”display) or an audio output device (e.g., a speaker or headphones).

In some embodiments, client computing device 402 includes an inputdevice 420 for receiving input from user 401. Input device 420 mayinclude, for example, a keyboard, a pointing device, a mouse, a stylus,a touch sensitive panel (e.g., a touch pad or a touch screen), a camera,a gyroscope, an accelerometer, a position detector, and/or an audioinput device. A single component such as a touch screen may function asboth an output device of media output component 415 and input device420.

Client computing device 402 may also include a communication interface425, which is communicatively coupleable to a remote device such asserver system 202 or a web server operated by a merchant. Communicationinterface 425 may include, for example, a wired or wireless networkadapter or a wireless data transceiver for use with a mobile phonenetwork (e.g., Global System for Mobile communications (GSM), 3G, 4G orBluetooth) or other mobile data network (e.g., WorldwideInteroperability for Microwave Access (WIMAX)).

Stored in memory area 410 are, for example, computer-readableinstructions for providing a user interface to user 401 via media outputcomponent 415 and, optionally, receiving and processing input from inputdevice 420. A user interface may include, among other possibilities, aweb browser and client application. Web browsers enable users 401 todisplay and interact with media and other information typically embeddedon a web page or a website hosted by a web server (e.g., web server304). A client application allows users 401 to interact with anapplication server (e.g., application server 302).

FIG. 5 illustrates an example configuration of a server computing device502. Server computing device 502 is representative of payment processingserver computing device 202 (shown in FIGS. 2 and 3), database server206, application server 302, web server 304, fax server 306, directoryserver 308, mail server 310, and one or more computing devices includedin rules engine 210.

Server computing device 502 includes a processor 504 for executinginstructions. Instructions may be stored in a memory area 506, forexample. Processor 504 may include one or more processing units (e.g.,in a multi-core configuration).

Processor 504 is operatively coupled to a communication interface 508such that server computing device 502 is capable of communicating with aremote device such as client computing device 402 or another servercomputing device 502. For example, communication interface 508 mayreceive requests from client systems 204 via the Internet, asillustrated in FIGS. 2 and 3.

Processor 504 may also be operatively coupled to a storage device 510.Storage device 510 is any computer-operated hardware suitable forstoring and/or retrieving data. In some embodiments, storage device 510is integrated in server computing device 502. For example, servercomputing device 502 may include one or more hard disk drives as storagedevice 510. In other embodiments, storage device 510 is external toserver computing device 502 and may be accessed by a plurality of servercomputing devices 502. For example, storage device 510 may includemultiple storage units such as hard disks or solid state disks in aredundant array of inexpensive disks (RAID) configuration. Storagedevice 510 may include a storage area network (SAN) and/or a networkattached storage (NAS) system.

In some embodiments, processor 504 is operatively coupled to storagedevice 510 via a storage interface 512. Storage interface 512 is anycomponent capable of providing processor 504 with access to storagedevice 510. Storage interface 512 may include, for example, an AdvancedTechnology Attachment (ATA) adapter, a Serial ATA (SATA) adapter, aSmall Computer System Interface (SCSI) adapter, a RAID controller, a SANadapter, a network adapter, and/or any component providing processor 504with access to storage device 510.

Memory areas 410 and 506 may include, but are not limited to, randomaccess memory (RAM) such as dynamic RAM (DRAM) or static RAM (SRAM),read-only memory (ROM), erasable programmable read-only memory (EPROM),electrically erasable programmable read-only memory (EEPROM), andnon-volatile RAM (NVRAM). The above memory types are example only, andare thus not limiting as to the types of memory usable for storage of acomputer program.

FIG. 6 is a diagram 600 of electronic data signals received andtransmitted among the payment processing server computing device 202 offirst payment processing network 128, the second payment processingnetwork 170, and the rules engine 210. More specifically, second paymentprocessing network 170 (“originating network”) transmits a clearing datasignal 602 to payment processing server computing device 202. Clearingdata signal 602 includes clearing data 604, representing one or moretransactions processed by second payment processing network 170. Morespecifically, clearing data 604 includes data regarding financialtransactions made, for example, between merchants and cardholders, asdescribed above with reference to FIG. 1. For certain transactions inthe clearing data 604, first payment processing network 128 (the“reviewing network”) will guarantee that the transaction will besettled, based information in the clearing data 604 and a set of rulesapplied by rules engine 210. For other transactions, first paymentprocessing network 128 will not guarantee settlement, because one ormore aspects of the transactions are not in compliance with the rulesapplied by rules engine 210. Payment processing server computing device202 transmits clearing data signal 602 and clearing data 604 to rulesengine 210 for analysis. As described above, in some implementations,rules engine 210 is separate from and communicatively coupled to paymentprocessing server computing device 210 and in other implementations,rules engine 210 is incorporated into payment processing servercomputing device 202.

Rules engine 210 applies stored rules to clearing data 604 as describedin more detail with reference to FIG. 7, and generates a clearingresponse data signal 606 that includes clearing response data 608.Clearing response data 608 includes identifiers of transactions forwhich first payment processing network 128 will not guarantee settlementand error codes identifying reasons why the settlement will not beguaranteed, as described in more detail with reference to FIG. 8. Rulesengine 210 transmits clearing response data signal 606 includingclearing response data 608 to second payment processing network 170. Insome implementations, rules engine 210 transmits clearing response datasignal 606 to second payment processing network 170 by transmittingclearing response data signal 606 to payment processing server computingdevice 202, which in turn, transmits clearing response data signal 606to second payment processing network 170. In other embodiments, rulesengine 210 transmits clearing response data signal 606 directly tosecond payment processing network 170.

FIG. 7 is a diagram 700 including rules that the rules engine 210applies to transaction data 724 included in clearing data 604 from thesecond payment processing network 170. More specifically, clearing data604 includes transaction data 724 for one transaction or, in someimplementations, a plurality of transactions (a “batch”). Rules 702 arestored in memory, for example database 208, and are accessed by rulesengine 210. Rules 702 include a predefined set of parties 704 identifiedby account ranges 706, bank identification numbers (BINs) 708, routingnumbers 710, and/or other identifiers 712 such as brand(s). For example,in some implementations, rules engine 210 detects that a bank 726, suchas an issuing bank 728 or an acquiring bank 730 is identified in atransaction, for example a transaction identified in clearing data 604by a transaction identifier 725, as a party to the transaction, andbased on that identification, determines that first payment processingnetwork 128 will not guarantee settlement of the transaction. In otherimplementations, rules engine 210 detects an account number 732 in thetransaction data 724 and determines that the account number 732 iswithin account ranges 706. Upon determining that the account number 732is included within account ranges 706, rules engine 210 determines thatfirst payment processing network 128 will not guarantee settlement ofthe transaction. More specifically, the corresponding party 704 may besanctioned under rules of a governmental entity having jurisdiction overfirst payment processing network 128 or may be associated with fraud ora relatively low likelihood of settlement, for example based on ahistory of unsuccessful settlements accessible to rules engine 210.

Rules 702 additionally include payment cancellation requests 714received by first payment processing network 128, for example a set ofrequests to cancel recurring payments received from one or morecardholder computing devices 204. Rules engine 210 detects accountnumber 732, a flag 736 indicating that the transaction is a recurringpayment transaction 738, and a merchant or acquiring bank 730, andmatches the transaction to a cancellation request 714 that includesaccount number 732 and the merchant or acquiring bank 730. Upondetermining that the transaction corresponds with the cancellationrequest 714, rules engine 210 determines that first payment processingnetwork 128 will not guarantee settlement of the transaction. In someimplementations, rules 702 includes transaction amounts 716 (e.g.,monetary amounts) that cannot be exceeded. For example, rules engine 210detects a monetary amount 734 stored in association with transactionidentifier 725 in transaction data 724 and compares monetary amount 734to transaction amount 716. Rules engine 210 determines that monetaryamount 734 is greater than transaction amount 716. Accordingly, rulesengine 210 determines that first payment processing network 128 will notguarantee settlement of the transaction.

In some implementations, rules engine 210 accesses exposure totals 718associated with one or more parties to a transaction in the clearingdata 604 and determines that the party has a running total 720 ofmonetary amounts 734 that exceeds a threshold amount 722. In response,rules engine 210 determines that first payment processing network 128will not guarantee settlement of the corresponding transaction.

FIG. 8 is a diagram of clearing response data 608 transmitted from therules engine 210 to the second payment processing network 170. Clearingresponse data 608 includes a first transaction identifier 802, forexample transaction identifier 725 (FIG. 7), and a first error code 804indicating a reason why first payment processing network will notguarantee settlement of a first transaction identified by firsttransaction identifier 802. First error code 804 indicates that one ofparties 704 to the transaction, for example the acquiring bank 730, waspresent in rules 702 as a bank for which first payment processingnetwork 128 will not guarantee settlement.

Clearing response data 608 also includes a second transaction identifier806 associated with a second transaction that was represented inclearing data 604. Clearing response data 608 includes a second errorcode 808 that is associated with second transaction identifier 806. Thesecond error code 808 indicates that the transaction was a recurringtransaction for which rules 702 included a cancellation request 714.Additionally, clearing response data 608 includes a third transactionidentifier 810 and an associated third error code 812. Third error code812 indicates that the first payment processing network 128 will notguarantee settlement for the corresponding transaction because themonetary amount 734 of the transaction exceeded a transaction amountlimit 716. Further, clearing response data 608 includes a fourthtransaction identifier 814 and a corresponding fourth error code 816.The fourth error code 816 indicates that the first payment processingnetwork 128 will not guarantee settlement of the correspondingtransaction because the running total 720 for a party (e.g., accountnumber 732) exceeds a threshold 722. In some implementations, clearingresponse data 608 only includes data (e.g., transaction identifiers anderror codes) associated with transactions that the first paymentprocessing network 128 will not guarantee settlement for. In otherimplementations, the clearing response data 608 includes transactionidentifiers and corresponding codes for transactions that the firstpayment processing network 128 will guarantee settlement for.

FIG. 9 is a flowchart of an example process 900 implemented by the rules210 engine for applying rules 702 from the first payment processingnetwork 128 to data signals (e.g., clearing data signals 602) from thesecond payment processing network 170. Initially, rules engine 210receives 902 a clearing data signal (e.g., clearing data signal 602)from an originating network (e.g., second payment processing network170). The clearing data signal 602 includes clearing data (e.g.,clearing data 604) for at least one transaction that has been processedby the originating network (e.g., second payment processing network170). The originating network (e.g., payment processing network 170) andthe reviewing network (e.g., first payment processing network 128) arepayment networks. Additionally, rules engine 210 generates 904 aclearing response data signal (e.g., clearing response data signal 606)that includes clearing response data (e.g., clearing response data 608)by comparing the clearing data (e.g., clearing data 604) to a set ofpredefined rules (e.g., rules 702) stored in a memory device (e.g.,database 208). The clearing response data (e.g., clearing response data608) indicates that the reviewing network (e.g., first paymentprocessing network 128) will not guarantee settlement of at least onetransaction included in the clearing data (e.g., clearing data 604).Further, rules engine 210 transmits 906 the clearing response datasignal (e.g., clearing response data signal 606) to the originatingnetwork (e.g., second payment processing network 170).

In some implementations, the clearing data includes a first monetaryamount for a first transaction, and the rules engine 210 detects thefirst monetary amount in the first transaction, adds the first monetaryamount to a running total, determines that the running total exceeds apredefined threshold amount stored in the memory device, and includes anerror code in the clearing response data indicating that the reviewingnetwork will not guarantee settlement at least because the running totalexceeds the predefined threshold amount. In some implementations, theclearing data includes a first monetary amount for a first transactionand the rules engine 210 compares the first monetary amount with atleast one predefined reference monetary amount, determines that thefirst monetary amount exceeds the predefined reference monetary amount,and includes an error code in the clearing response data indicating thatthe reviewing network will not guarantee settlement at least because thefirst monetary amount exceeds the predefined reference monetary amount.

In some implementations, the clearing data includes an identification ofa first bank that is one of an acquirer bank and an issuing bankassociated with a first transaction, and the rules engine 210 comparesthe identification of the first bank with a predefined set of sanctionedbanks stored in the memory device, determines that the first bank isincluded in the predefined set of sanctioned banks, and includes anerror code in the clearing response data indicating that the reviewingnetwork will not guarantee settlement at least because the first bank isincluded in the predefined set of sanctioned banks.

In some implementations, the clearing data includes a flag indicatingthat a first transaction is a recurring transaction, and the rulesengine 210 detects the flag associated with the first transaction,compares the first transaction with a set of recurring paymentcancellation requests, and includes an error code in the clearingresponse data indicating that the reviewing network will not guaranteesettlement at least because the first transaction is associated with arecurring payment cancellation request. In some implementations, theclearing data includes an account number associated with a firsttransaction, and the rules engine 210 compares the account number to apredefined range of authorized account numbers, determines that theaccount number is outside of the range, and includes an error code inthe clearing response data indicating that the reviewing network willnot guarantee settlement at least because the first transaction isassociated with an account number that is not in the predefined range ofauthorized account numbers.

In some implementations, the rules engine 210 determines that theclearing data for a first transaction is in compliance with the set ofpredefined rules and transmits funds from a financial account associatedwith the reviewing network to an acquiring bank associated with thefirst transaction when the first transaction does not settle. In someimplementations, the rules engine 210 receives the clearing data signalincluding clearing data for a batch of transactions that have beenprocessed by the originating network on behalf of a first acquiring bankand generates the clearing response data for every transaction in thebatch.

FIG. 10 is a diagram 1000 of components of one or more example computingdevices, for example rules engine 210, that may be used in embodimentsof the described systems and methods. FIG. 10 further shows aconfiguration of data in database 208. Database 208 is in communicationwith several separate components within rules engine 210, which performspecific tasks.

Rules engine 210 includes a clearing data signal receiving component1002 that receives a clearing data signal from the originating network.The clearing data signal includes clearing data for at least onetransaction that has been processed by the originating network.Additionally, rules engine 210 includes a clearing response datagenerating component 1004 that generates a clearing response data signalthat includes clearing response data. More specifically, clearingresponse data generating component 1004 compares the clearing data tothe set of predefined rules stored in the memory device (e.g., database208). The clearing response data indicates that the reviewing networkwill not guarantee settlement of at least one transaction included inthe clearing data. Further, rules engine 210 includes a clearingresponse data transmitting component 1006 that transmits the clearingresponse data signal to the originating network.

In an example embodiment, data in database 208 is divided into aplurality of sections, including but not limited to, a parties section1008, a cancellation requests section 1010, a transaction amount section1012, an exposure totals section 1014, a clearing data section 1016, anda clearing response data section 1018. These sections stored in database208 are interconnected to retrieve and store information in accordancewith the functions and processes described above.

The term processor, as used herein, refers to central processing units,microprocessors, microcontrollers, reduced instruction set circuits(RISC), application specific integrated circuits (ASIC), logic circuits,and any other circuit or processor capable of executing the functionsdescribed herein.

As used herein, the terms “software” and “firmware” are interchangeable,and include any computer program stored in memory for execution byprocessor 405, 504, including RAM memory, ROM memory, EPROM memory,EEPROM memory, and non-volatile RAM (NVRAM) memory. The above memorytypes are example only, and are thus not limiting as to the types ofmemory usable for storage of a computer program.

As will be appreciated based on the foregoing specification, theabove-discussed embodiments of the disclosure may be implemented usingcomputer programming or engineering techniques including computersoftware, firmware, hardware or any combination or subset thereof. Anysuch resulting computer program, having computer-readable and/orcomputer-executable instructions, may be embodied or provided within oneor more computer-readable media, thereby making a computer programproduct, i.e., an article of manufacture, according to the discussedembodiments of the disclosure. These computer programs (also known asprograms, software, software applications or code) include machineinstructions for a programmable processor, and can be implemented in ahigh-level procedural and/or object-oriented programming language,and/or in assembly/machine language. As used herein, the terms“machine-readable medium,” “computer-readable medium,” and“computer-readable media” refer to any computer program product,apparatus and/or device (e.g., magnetic discs, optical disks, memory,Programmable Logic Devices (PLDs)) used to provide machine instructionsand/or data to a programmable processor, including a machine-readablemedium that receives machine instructions as a machine-readable signal.The “machine-readable medium,” “computer-readable medium,” and“computer-readable media,” however, do not include transitory signals(i.e., they are “non-transitory”). The term “machine-readable signal”refers to any signal used to provide machine instructions and/or data toa programmable processor.

The above-described systems and methods enable distributed evaluation ofdata across two payment networks. More specifically, the systems andmethods described herein provide settlement guarantee on arisk-sensitive basis when a second network operates with a first networkmanage one or more payment processing functions, for example clearing oftransactions. Accordingly, the systems and methods described hereinenable the first network to evaluate clearing transactions from thesecond network prior to settlement being effected.

This written description uses examples, including the best mode, toenable any person skilled in the art to practice the disclosure,including making and using any devices or systems and performing anyincorporated methods. The patentable scope of the disclosure is definedby the claims, and may include other examples that occur to thoseskilled in the art. Such other examples are intended to be within thescope of the claims if they have structural elements that do not differfrom the literal language of the claims, or if they include equivalentstructural elements with insubstantial differences from the literallanguages of the claims.

The invention claimed is:
 1. A rules engine for applying rules from areviewing network to data signals from an originating network, saidrules engine comprises a processor coupled to a memory device, saidrules engine is coupled to the reviewing network, said rules engine isconfigured to: receive a clearing data signal from the originatingnetwork, the clearing data signal including clearing data for a firsttransaction that has been processed by the originating network, whereinthe originating network and the reviewing network are payment networks;generate a clearing response data signal including clearing responsedata by comparing the clearing data to a set of predefined rules storedin said memory device, wherein the clearing response data indicates thatthe reviewing network will guarantee settlement of the first transactionincluded in the clearing data; transmit the clearing response datasignal to the originating network; and transmit funds from a financialaccount associated with the reviewing network to an acquiring bankassociated with the first transaction after the first transaction doesnot settle on the originating network.
 2. The rules engine of claim 1,wherein the clearing data includes a first monetary amount for a secondtransaction, the rules engine further configured to: detect the firstmonetary amount in the second transaction; add the first monetary amountto a running total; determine that the running total exceeds apredefined threshold amount stored in said memory device; and include anerror code in the clearing response data indicating that the reviewingnetwork will not guarantee settlement of the second transaction, atleast because the running total exceeds the predefined threshold amount.3. The rules engine of claim 1, wherein the clearing data includes afirst monetary amount for a second transaction, said rules engine isfurther configured to: compare the first monetary amount with at leastone predefined reference monetary amount; determine that the firstmonetary amount exceeds the predefined reference monetary amount; andinclude an error code in the clearing response data indicating that thereviewing network will not guarantee settlement of the secondtransaction, at least because the first monetary amount exceeds thepredefined reference monetary amount.
 4. The rules engine of claim 1,wherein the clearing data includes an identification of a first bankthat is one of an acquirer bank and an issuing bank associated with asecond transaction, said rules engine is further configured to: comparethe identification of the first bank with a predefined set of sanctionedbanks stored in said memory device; determine that the first bank isincluded in the predefined set of sanctioned banks; and include an errorcode in the clearing response data indicating that the reviewing networkwill not guarantee settlement of the second transaction, at leastbecause the first bank is included in the predefined set of sanctionedbanks.
 5. The rules engine of claim 1, wherein the clearing dataincludes a flag indicating that a second transaction is a recurringtransaction, said rules engine is further configured to: detect the flagassociated with the second transaction; compare the second transactionwith a set of recurring payment cancellation requests; and include anerror code in the clearing response data indicating that the reviewingnetwork will not guarantee settlement of the second transaction, atleast because the second transaction is associated with a recurringpayment cancellation request.
 6. The rules engine of claim 1, whereinthe clearing data includes an account number associated with a secondtransaction, said rules engine is further configured to: compare theaccount number to a predefined range of authorized account numbers;determine that the account number is outside of the predefined range ofauthorized account numbers; and include an error code in the clearingresponse data indicating that the reviewing network will not guaranteesettlement of the second transaction, at least because the secondtransaction is associated with an account number that is not in thepredefined range of authorized account numbers.
 7. The rules engine ofclaim 1, further configured to: receive the clearing data signalincluding clearing data for a batch of transactions that have beenprocessed by the originating network on behalf of a first acquiringbank; and generate the clearing response data for every transaction inthe batch of transactions.
 8. A method for applying rules from areviewing network to data signals from an originating network, saidmethod is implemented by a rules engine including a processor coupled toa memory device and to a payment network, said method comprising:receiving, by the rules engine, a clearing data signal from theoriginating network, the clearing data signal including clearing datafor a first transaction that has been processed by the originatingnetwork, wherein the originating network and the reviewing network arepayment networks; generating, by the rules engine, a clearing responsedata signal including clearing response data by comparing the clearingdata to a set of predefined rules stored in the memory device, whereinthe clearing response data indicates that the reviewing network willguarantee settlement of the first transaction included in the clearingdata; transmitting, by the rules engine, the clearing response datasignal to the originating network; and transmitting funds from afinancial account associated with the reviewing network to an acquiringbank associated with the first transaction after the first transactiondoes not settle on the originating network.
 9. The method of claim 8,wherein the clearing data includes a first monetary amount for a secondtransaction, said method further comprising: detecting the firstmonetary amount in the second transaction; adding the first monetaryamount to a running total; determining that the running total exceeds apredefined threshold amount stored in the memory device; and includingan error code in the clearing response data indicating that thereviewing network will not guarantee settlement of the secondtransaction, at least because the running total exceeds the predefinedthreshold amount.
 10. The method of claim 8, wherein the clearing dataincludes a first monetary amount for a second transaction, said methodfurther comprising: comparing the first monetary amount with at leastone predefined reference monetary amount; determining that the firstmonetary amount exceeds the predefined reference monetary amount; andincluding an error code in the clearing response data indicating thatthe reviewing network will not guarantee settlement of the secondtransaction, at least because the first monetary amount exceeds thepredefined reference monetary amount.
 11. The method of claim 8, whereinthe clearing data includes an identification of a first bank that is oneof an acquirer bank and an issuing bank associated with a secondtransaction, said method further comprising: comparing theidentification of the first bank with a predefined set of sanctionedbanks stored in the memory device; determining that the first bank isincluded in the predefined set of sanctioned banks; and including anerror code in the clearing response data indicating that the reviewingnetwork will not guarantee settlement of the second transaction, atleast because the first bank is included in the predefined set ofsanctioned banks.
 12. The method of claim 8, wherein the clearing dataincludes a flag indicating that a second transaction is a recurringtransaction, said method further comprising: detecting the flagassociated with the first transaction; comparing the second transactionwith a set of recurring payment cancellation requests; and including anerror code in the clearing response data indicating that the reviewingnetwork will not guarantee settlement of the second transaction, atleast because the first transaction is associated with a recurringpayment cancellation request.
 13. The method of claim 8, wherein theclearing data includes an account number associated with a secondtransaction, said method further comprising: comparing the accountnumber to a predefined range of authorized account numbers; determiningthat the account number is outside of the predefined range of authorizedaccount numbers; and including an error code in the clearing responsedata indicating that the reviewing network will not guarantee settlementof the second transaction, at least because the second transaction isassociated with an account number that is not in the predefined range ofauthorized account numbers.
 14. The method of claim 8, furthercomprising: receiving the clearing data signal including clearing datafor a batch of transactions that have been processed by the originatingnetwork on behalf of a first acquiring bank; and generating the clearingresponse data for every transaction in the batch of transactions.
 15. Anon-transitory computer-readable storage medium havingcomputer-executable instructions embodied thereon for applying rulesfrom a reviewing network to data signals from an originating network,wherein when executed by a rules engine including a processor coupled toa memory device and to a processing network, the computer-executableinstructions cause the rules engine to: receive a clearing data signalfrom the originating network, the clearing data signal includingclearing data for a first transaction that has been processed by theoriginating network, wherein the originating network and the reviewingnetwork are payment networks; generate a clearing response data signalincluding clearing response data by comparing the clearing data to a setof predefined rules stored in the memory device, wherein the clearingresponse data indicates that the reviewing network will guaranteesettlement of the first transaction included in the clearing data;transmit the clearing response data signal to the originating network;and transmit funds from a financial account associated with thereviewing network to an acquiring bank associated with the firsttransaction after the first transaction does not settle on theoriginating network.
 16. The non-transitory computer-readable storagemedium of claim 15, wherein the clearing data includes a first monetaryamount for a second transaction and said computer-executableinstructions additionally cause the rules engine to: detect the firstmonetary amount in the second transaction; add the first monetary amountto a running total; determine that the running total exceeds apredefined threshold amount stored in the memory device; and include anerror code in the clearing response data indicating that the reviewingnetwork will not guarantee settlement of the second transaction, atleast because the running total exceeds the predefined threshold amount.17. The non-transitory computer-readable storage medium of claim 15,wherein the clearing data includes a first monetary amount for a secondtransaction and said computer-executable instructions additionally causethe rules engine to: compare the first monetary amount with at least onepredefined reference monetary amount; determine that the first monetaryamount exceeds the predefined reference monetary amount; and include anerror code in the clearing response data indicating that the reviewingnetwork will not guarantee settlement of the second transaction, atleast because the first monetary amount exceeds the predefined referencemonetary amount.
 18. The non-transitory computer-readable storage mediumof claim 15, wherein the clearing data includes an identification of afirst bank that is one of an acquirer bank and an issuing bankassociated with a second transaction, and said computer-executableinstructions additionally cause the rules engine to: compare theidentification of the first bank with a predefined set of sanctionedbanks stored in the memory device; determine that the first bank isincluded in the predefined set of sanctioned banks; and include an errorcode in the clearing response data indicating that the reviewing networkwill not guarantee settlement of the second transaction, at leastbecause the first bank is included in the predefined set of sanctionedbanks.